The Mineral Resources Ltd (ASX: MIN) share price is up 4.6%.
Shares in the S&P/ASX 200 Index (ASX: XJO) diversified resources producer closed yesterday trading for $64.35. In morning trade on Tuesday, shares are swapping hands for $67.29 apiece.
For some context, the ASX 200 is up 0.2% at this same time.
This comes following the release of Mineral Resources financial results for the full year ended 30 June (FY23).
Here are the highlights.
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Mineral Resources share price lifts on soaring revenue
- Revenue of $4.8 billion, up 40% from FY22
- Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 71% year on year to $1.8 billion
- Net profit after tax (NPAT) of $244 million, down 30% from FY22
- Fully franked final dividend of 70 cents per share; total FY23 dividend of $1.90 per share, up 90% on FY22
- Cash of $1.4 billion, down 43% year on year
What else happened during the year?
Other metrics that could have an impact on the Mineral Resources share price was the 166% year on year increase in net debt to $1.9 billion.
The ASX 200 miner's net assets increased by 8% to $3.5 billion, while the return on invested capital was 6.7%, down from a 14.1% return last year.
On the lithium front, Mineral Resources reported record earnings with its Wodgina ramp-up continuing and maiden lithium battery chemical earnings.
The year also saw the company renegotiate its MARBL joint venture agreement with United States lithium giant Albemarle Corporation (NYSE: ALB).
And Mineral Resources completed the construction of its Mt Marion plant expansion, with exploration results confirming the potential for open pit extensions and underground mining.
As for its iron ore segment, management made the Final Investment Decision (FID) to develop the Onslow Iron project. That project received all the major approvals, and construction was reported to be "well progressed".
The miner also posted a $552 million non-cash, post-tax impairment to its Utah Point Hub and Yilgarn Hub assets.
In its energy business, Mineral Resources drilled two onshore natural gas discoveries in the Perth Basin and completed the takeover of Norwest Energy NL.
And the company's mining services segment was awarded six new contracts and renewed four contracts with Tier 1 clients over the 12 months.
What did management say?
Commenting on the results boosting the Mineral Resources share price today, managing director Chris Ellison said:
MinRes continued to execute our high-growth strategy… Our growth was driven by record lithium earnings, but we also faced operational challenges in the second half and were not immune from global inflationary pressures that impacted all businesses.
Statutory net profit after tax of $244 million was impacted by non-cash impairment charges of our Yilgarn and Utah Point iron ore assets. These operations continue to play a part in our transition to a lower-cost, longer-life iron ore portfolio.
What's next?
Looking at what could impact the Mineral Resources share price in the months ahead, Ellison noted, "We are investing in exploration to maximise the value potential from the Yilgarn, while options for Utah Point are being considered as part of the South West Creek development."
The ASX 200 miner's flagship Onslow Iron project is on track and expected to start generating cash in 12 months.
Ellison said that the successes achieved in FY23 leave Mineral Resources "well-placed for another year of transformational growth across all parts of our business that will continue to drive value for our shareholders."
Mineral Resources share price snapshot
The Mineral Resources share price is up 5% over the past 12 months, not including the ASX 200 miner's dividend payouts.
